It appears to be a fine bull play at first glance. However, I'm rejecting it as a trade without a full analysis because the three-year chart isn't bullish.
Click on chart to enlarge.
|ADS 2 years daily bars|
I analyzed two symbols as potential bear plays keyed to earnings announcements under my very short term volatility rules. Bottom line: I intend to trade AAPL today, but not KO. See the combined report: "AAPL and KO: Volatility plays".
-- Tim Bovee, Portland, Oregon, Oct. 20, 2014
My shorter-term trading rules can be read here. My longer-term trading rules can be read here. And the classic Turtle Trading rules on which my rules are based can be read here. My very short term volatility trading rules can be read here
Tim Bovee, Private Trader tracks the analysis and trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.
No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decisions for his or her own account, and take responsibility for the consequences.License
All content on Tim Bovee, Private Trader by Timothy K. Bovee is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Based on a work at www.timbovee.com.